SEC and Genesis Reach settlement approved by the Court
According to PANews, the settlement between the U.S. Securities and Exchange Commission (SEC) and Genesis was approved by the court during a hearing on Monday. Judge Sean Lane deemed this a 'reasonable settlement' as no one raised any objections. Earlier this month, Genesis filed a settlement agreement with the SEC in court. As part of the settlement, the company may have to pay a fine of $21 million, but the exact amount depends on the amount repaid to creditors. The judge said the court had set the hearing to last three days, but the time could be extended if necessary.
The key issue is DCG's opposition to the bankruptcy plan proposed by Genesis creditors. DCG has previously argued that the plan “favors” some creditors and “deprives” the company of “other valuable economic and corporate governance rights.” Genesis attorney Sean O'Neill said during Monday's hearing that DCG should not intervene and take a portion of its client's assets. Genesis previously stated that under its plan, creditors can expect a recovery rate of up to 77%, but this depends on whether the plan receives judge approval.
